Lead Editor Investigations
asha.javeed@guardian.co.tt
Development of the Eco-friendly Business Sector (Scrap Iron)
2.114 By memorandum dated 05/09/2023, the Ministry has advised that an overseas payment of US$26,000.00 was made on 10/07/2023 to a company located in Indonesia for the purchase of four laser analysers for use by the Scrap Metal Inspectors.
2.115 Numerous attempts were made to contact this company for the expected date of delivery of items but there was no response. This company’s website can no longer be found on the internet. To date, the Ministry has been unable to secure the items from the supplier nor recover the payment made. At the time of audit, the items had still not been received.
2.116 A report of this loss was submitted to the Auditor General and the Commissioner of Police.
—Extract from the Auditor General’s Report for the financial year October 1, 2022, to September 30, 2023.
MIC Institute of Technology (MIC) chairman Professor Clement Imbert says due diligence was done by the institution in the procurement of four laser analysers for scrap metal inspectors on behalf of the Ministry of Trade and Industry (MTI).
However, despite this, a firm believed to be based in Indonesia which was paid US$26,000 (according to MTI the equivalent was TT$176,628.40 at the time) for the equipment has vanished and neither the MIC nor the ministry or the Auditor General’s Office can contact the firm, nor can it be found online.
Imbert told Guardian Media yesterday that while due diligence was done in the procurement, that MIC had not used the company before.
It was the permanent secretary in the Ministry of Trade and Industry Randall Karim who made a police report and alerted the Auditor General, after he became aware of the matter shortly after he became PS.
Guardian Media obtained a bundle of documents which were submitted to Commissioner of Police Erla Harewood-Christopher for advice and intervention in the matter.
According to the documents, Hitech Industry invoiced the ministry for four units, each at US$6,5000 per unit, for a total of US$26,000.
The invoice said that shipping, insurance and VAT were free and that the units would be delivered by courier company DHL within three to four days of payments being received.
It was signed by a director, Supri Agus Hariyono, and communication was done through a general manager, Niluh Ratnadi.
When MIC sent the banking information to the ministry, it was in the name of the general manager Ratnadi and not the company supplying the equipment.
Despite this anomaly, the ministry authorised the payment to the company.
In March 2023, during a Scrap Metal Identification Workshop, MIC recommended the use of Handheld Laser Induced Breakdown Spectroscopy (LIBS) Analysers by Scrap Metal Inspectors employed by the ministry while conducting inspection duties.
The ministry then requested the assistance of the MIC, given their experience in the area, to source suppliers and quotations for procurement of the analysers.
During the period March 10-13, 2023, the MIC requested quotations from the manufacturers and suppliers of these devices.
Based on the criteria of their search (See Box), the MIC recommended HiTech Industry, Inc. for the acquisition of four (4) Rigaku KT-100s Handheld LIBS Analysers, noting that “it is the cheapest price and gives the best warranty”.
On May 3, 2023, the MTI commenced its procurement process for the purchase of the four analysers.
On May 9, 2023 members of the MTI’s Procurement Evaluation Committee met to evaluate the proposals/quotations received from the four companies and determined that HiTech Industry Inc. was the first ranked bidder.
With the recommendation by the MIC to the ministry, the ministry in turn sought funding from the Ministry of Finance.
On May 24, 2023, the ministry received a disbursement to cover the purchase of the equipment.
On May 29, 2023, a purchase order was prepared to HiTech. According to the documents, on May 31, 2023, the purchase order was transmitted via email to Hendrico Samadi, a sales manager at HiTech Industry who was communicating to MIC on the sale.
On June 1, 2023, Samadi transmitted the order invoice which provided payment details.
The ministry transmitted a Request for Payment through the Central Bank of Overseas Mission to the Treasury Division.
The beneficiary’s name was Ratnadi, through the Bank Central Asia, with the address in Jakarta, Indonesia.
On June 28, 2023, the Treasury Division indicated payments were not made directly to Indonesia and requested intermediary banking information in order to process the payment transaction.
An email requesting this information was sent to Samadi and on June 30, 2023, he provided JP Morgan Chase Bank in New York as the intermediary bank.
On July 3, 2023, a Request for Payment was re-submitted to the Treasury Division.
On July 7, 2023, a wire transfer payment was issued to Ratnadi in the amount of US$26,000, equivalent to TT$176, 628.40. On the same date, the ministry received an email from Samadi enquiring about the payment schedule and the ministry indicated that payment was in process.
On July 12, 2023, the ministry contacted Samadi to enquire whether payment was received but Samadi indicated payment had not been received and requested a copy of proof of payment.
On July 31, 2023, an email was sent to Samadi to indicate that the MTI received confirmation that payment was successful.
The ministry requested that Samadi confirm receipt of payment and provide details on delivery of the analysers.
After that, all communication between the ministry and HiTech stopped.
Guardian Media was told that while the fault lay with MIC and their due diligence in the procurement, there was little that could be done to recover the money since the company and its vendors have disappeared.
Earlier this month, when Opposition MP Roodal Moonilal raised the matter before the final Auditor’s General report was laid last Friday, Minister of Trade and Industry Paula Gopee-Scoon had answered, “These pieces of equipment were procured by the Metal Industries Company on behalf of the MTI to assist Scrap Metal Inspectors in the identification of metals under the new Scrap Metal Regime. Since then, the inspectors have received specialised training and are able to identify the different types of scrap metal, and are performing their required functions. The police (are) conducting the investigation.”
(BOX)
How MIC did the procurement
According to the documents, the MIC used the following criteria for selection of suppliers of the LIBS device:
1. Sorting of ferrous and no-ferrous materials
2. Handheld – portable
3. For use out in the field – exposure to water & dust (not only for use in a lab environment)
4. Minimum to no operator training
5. Positive material identification
It said through Internet searches, the following devices were found:
1. Hitachi – LIBS (laser-induced breakdown spectroscopy) Analyser: Vulcan Expert Handheld Analyser
2. Niton Apollo LIBS Analyser
3. Vanta C series XRF Analyser
4. Rigaku KT-100S Handheld Analyser
5. Vela Portable LIBS Analyser
From the four companies from which it got invoices, it recommended HiTech Industry Inc to the Ministry of Trade as the first-ranked bidder.